Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, has assured citizens that the nation is on the right path to economic recovery, with food prices expected to decline and availability to increase as inflation rates begin to slow down.
Edun’s optimistic forecast came during an appearance on Channels Television on Sunday, where he outlined the government’s ongoing efforts to bolster agricultural production and combat inflation.
Edun highlighted the government’s proactive measures in increasing agricultural output as a pivotal factor in reducing inflation.
“Agricultural output is up to bring down inflation. Inflation is slowing month on month. Food prices will come down; food availability will increase,” he stated.
Inflation at a 28-Year High
The minister’s comments follow a 28-year high increase in the inflation rate to 33.69 percent in April, the 16th consecutive month of increase.
Despite this, Edun pointed to a slight month-on-month deceleration, with April’s inflation rate at 2.29%, down from 3.02% in March.
In addressing the high inflation, Edun acknowledged that food insecurity is a global issue, not confined to Nigeria alone. He noted that approximately 30 percent of the global population faces food insecurity.
The minister also emphasized that while the government’s macroeconomic policies have contributed to inflationary pressures, steps are being taken to address these challenges.
“Provision of food, cheaper transport, and creation of jobs are being focused on,” Edun explained. “It does take time for positive outcomes to be felt, but we’re working on improving the citizen’s purchasing power.”
Economic Expert Insights
However, some experts remain cautious about the pace of inflation’s decline. Uchenna Uzo, a professor of marketing and faculty director at Lagos Business School, suggested that while inflation might decrease, it is unlikely to fall to the 21 percent projected by the Central Bank of Nigeria.
“We will see a drop in the country’s inflation but it’s going to be a mild and moderate drop,” Uzo said, highlighting the absence of increases in minimum wage or real incomes as a potential brake on demand.